External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Despite surging 2x in the last three months, we see further steam in Gravita India (GRAV) stock on the back of: 1) Regulatory tailwinds aiding availability of scrap in domestic market; 2) planned expansion in Europe; and 3) increased use of recycled material across products and geographies.</li><li>In our view, the positive impact of regulatory tailwinds and benefits from planned capacity expansion as per 2028 plan is likely to be visible in earnings in medium term.</li><li>Outlook Hence, we shift our valuation methodology to DCF (earlier P/E) in order to adequately capture the growth path.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Despite surging 2x in the last three months, we see further steam in Gravita India (GRAV) stock on the back of: 1) Regulatory tailwinds aiding availability of scrap in domestic market; 2) planned expansion in Europe; and 3) increased use of recycled material across products and geographies.In our view, the positive impact of regulatory tailwinds and benefits from planned capacity expansion as per 2028 plan is likely to be visible in earnings in medium term.Outlook Hence, we shift our valuation methodology to DCF (earlier P/E) in order to adequately capture the growth path.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>The GST Council has introduced the reverse charge mechanism (RCM) on supply of metal scrap by a unregistered person to a registered person.</li><li>About 65% of the lead recycling market is unorganized, which gets meaningful cost advantage (18%) over organized players through GST evasion.</li><li>With the introduction of RCM, the responsibility of deducting and depositing of GST would now transfer to the buyer of scrap.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The GST Council has introduced the reverse charge mechanism (RCM) on supply of metal scrap by a unregistered person to a registered person.About 65% of the lead recycling market is unorganized, which gets meaningful cost advantage (18%) over organized players through GST evasion.With the introduction of RCM, the responsibility of deducting and depositing of GST would now transfer to the buyer of scrap.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Gravita India - Introduction of Reverse Charge Mechanism Favorable for GRAV

Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

<ul>
<li>In FY24, <a href="https://www.smartkarma.com/entities/gravita-india-ltd" target="_blank" data-smartkarma-citation="entities:17385:1" rel="noopener">Gravita India (GRAV IN)</a> had faced qualified opinion from the auditors regarding its accounting pertaining to share based payments, which in a way boosted the earnings. </li>
<li>However, the unusual accounting behaviour is not for the company. We have seen some irregular line items in the past as well, w.r.t. gains and losses on commodities and forex. </li>
<li>Other key takeaways include negative free cash flows and difficulty in cash generation, revenues from traded goods not being in sync, fresh contingent liabilities, etc.</li>
</ul>


In FY24, Gravita India (GRAV IN) had faced qualified opinion from the auditors regarding its accounting pertaining to share based payments, which in a way boosted the earnings. 
However, the unusual accounting behaviour is not for the company. We have seen some irregular line items in the past as well, w.r.t. gains and losses on commodities and forex. 
Other key takeaways include negative free cash flows and difficulty in cash generation, revenues from traded goods not being in sync, fresh contingent liabilities, etc.


Asia Ex Japan; Technology and Consumption.

Rohinee Sharma

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Gravita is a  company whose philosophy is to usher in a better tomorrow by changing and nurturing the world for the better. Sounds like corporate vaporing? But it is literally what Gravita India Ltd does - Waste Recycling!  Twenty-five years ago the company took its first step with recycling of Lead ( 84% of revenues and 93% of EBIT -FY18E  ) and over the last few years added Aluminium and PET Recycling.The company's present size (market cap: US$150M) is no deterrent to its aspiration to become the largest recycler in the world by 2023. Our analysis does not give us reasons to doubt that they are executing well. The company generates very healthy ROEs of 28% and 31% ( FY18E &amp; FY19E, vs 22.5% FY17), has impressive sales and profit growth estimates in the range of 44 % and 61% for FY18 ( 45% and 43% for FY19E). Who said you can’t make money from trash ?!

Gravita is a  company whose philosophy is to usher in a better tomorrow by changing and nurturing the world for the better. Sounds like corporate vaporing? But it is literally what Gravita India Ltd does - Waste Recycling!  Twenty-five years ago the company took its first step with recycling of Lead ( 84% of revenues and 93% of EBIT -FY18E  ) and over the last few years added Aluminium and PET Recycling.The company's present size (market cap: US$150M) is no deterrent to its aspiration to become the largest recycler in the world by 2023. Our analysis does not give us reasons to doubt that they are executing well. The company generates very healthy ROEs of 28% and 31% ( FY18E &amp; FY19E, vs 22.5% FY17), has impressive sales and profit growth estimates in the range of 44 % and 61% for FY18 ( 45% and 43% for FY19E). Who said you can’t make money from trash ?!

From Trash To Cash: A Sustainable Recycling Theme

India

Gravita India is a global recycling company specializing in the recycling of lead, aluminum, plastic, lithium-ion batteries, and waste tires through environmentally responsible processes. The company also provides turnkey recycling solutions globally. It was founded in 1992 and is headquartered in Jaipur, India.

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Gravita India (GRAV IN)

Gravita India - The Stars Shine Down

In our view, the positive impact of regulatory tailwinds and benefits from planned capacity expansion as per 2028 plan is likely to be visible in...

ICICI Securities Limited

Gravita India - Introduction of Reverse Charge Mechanism Favorable for GRAV

The GST Council has introduced the reverse charge mechanism (RCM) on supply of metal scrap by a unregistered person to a registered person.

Emkay

Gravita India Ltd- Forensic Analysis

In FY24, Gravita India faced auditor scrutiny for accounting practices, however the unusual accounting/irregularity in line items was there before...

Nitin Mangal

From Trash To Cash: A Sustainable Recycling Theme

Gravita is a company whose philosophy is to usher in a better tomorrow by changing and nurturing the world for the better. Sounds like corporate...

Rohinee Sharma

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52-week Range

Market Cap (USDm)

P/E

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Gravita India - The Stars Shine Down

In our view, the positive impact of regulatory tailwinds and benefits from planned capacity expansion as per 2028 plan is likely to be visible in...

ICICI Securities Limited

Gravita India - Introduction of Reverse Charge Mechanism Favorable for GRAV

The GST Council has introduced the reverse charge mechanism (RCM) on supply of metal scrap by a unregistered person to a registered person.

Emkay

Gravita India Ltd- Forensic Analysis

​In FY24, Gravita India faced auditor scrutiny for accounting practices, however the unusual accounting/irregularity in line items was there before...

Nitin Mangal

From Trash To Cash: A Sustainable Recycling Theme

Gravita is a company whose philosophy is to usher in a better tomorrow by changing and nurturing the world for the better. Sounds like corporate...

Rohinee Sharma

In FY24, Gravita India faced auditor scrutiny for accounting practices, however the unusual accounting/irregularity in line items was there before...